Determinants of tax compliance of micro, small, and medium enterprises (MSMEs) in Pekanbaru, Indonesia
Taxes are the most significant contributor to the Indonesian budget; therefore, increasing taxpayer compliance is crucial for achieving tax revenue realization. This study aims to investigate the role of tax incentives and motivational postures in increasing taxpayer compliance. The analysis was con...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2023-09-01
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| Series: | Problems and Perspectives in Management |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18807/PPM_2023_03_Ratnawati.pdf |
| _version_ | 1827817891243753472 |
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| author | Vince Ratnawati Rusli Rusli Nita Wahyuni |
| author_facet | Vince Ratnawati Rusli Rusli Nita Wahyuni |
| author_sort | Vince Ratnawati |
| collection | DOAJ |
| description | Taxes are the most significant contributor to the Indonesian budget; therefore, increasing taxpayer compliance is crucial for achieving tax revenue realization. This study aims to investigate the role of tax incentives and motivational postures in increasing taxpayer compliance. The analysis was conducted in Pekanbaru, Riau, Indonesia, and the sample consisted of MSME taxpayers registered at the Pekanbaru Tax Service Office. Purposive sampling was utilized to collect data, and of the 384 returned questionnaires, 254 were used for statistical analysis. Multiple regression analysis was utilized to examine the impact of tax incentives on taxpayer compliance, and moderated regression analysis was applied to test the moderating role of motivational postures. The findings showed that the p-values of the first and second hypotheses were 0.00 and 0.001 (0.05, with a positive β value), and the third hypothesis had 0.001 (< 0.05, with a negative β value). This result indicates that the first, second, and third hypotheses are accepted, which means that the more taxpayers feel that tax incentives are beneficial, the greater their compliance with their tax responsibilities. Additionally, tax incentives significantly raise taxpayer compliance when they have a positive motivational posture and decrease it if they have a negative one. The implications of this study influence tax authorities to incentivize taxpayers to increase compliance. Knowledge of the taxpayer’s motivational postures will make it easier for tax authorities to manage taxpayer behavior to increase taxpayer compliance. |
| first_indexed | 2024-03-12T00:39:43Z |
| format | Article |
| id | doaj.art-ee3f463f98d94d77b922082f5acc8cbb |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-03-12T00:39:43Z |
| publishDate | 2023-09-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-ee3f463f98d94d77b922082f5acc8cbb2023-09-15T08:51:14ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672023-09-0121360161310.21511/ppm.21(3).2023.4718807Determinants of tax compliance of micro, small, and medium enterprises (MSMEs) in Pekanbaru, IndonesiaVince Ratnawati0https://orcid.org/0000-0003-1630-4546Rusli Rusli1https://orcid.org/0009-0001-2172-4652Nita Wahyuni2https://orcid.org/0000-0002-3465-5932Dr., Professor, Faculty of Economy and Business, Riau UniversityMaster, Faculty of Economy and Business, Riau UniversityMaster, Faculty of Economy and Business, Riau UniversityTaxes are the most significant contributor to the Indonesian budget; therefore, increasing taxpayer compliance is crucial for achieving tax revenue realization. This study aims to investigate the role of tax incentives and motivational postures in increasing taxpayer compliance. The analysis was conducted in Pekanbaru, Riau, Indonesia, and the sample consisted of MSME taxpayers registered at the Pekanbaru Tax Service Office. Purposive sampling was utilized to collect data, and of the 384 returned questionnaires, 254 were used for statistical analysis. Multiple regression analysis was utilized to examine the impact of tax incentives on taxpayer compliance, and moderated regression analysis was applied to test the moderating role of motivational postures. The findings showed that the p-values of the first and second hypotheses were 0.00 and 0.001 (0.05, with a positive β value), and the third hypothesis had 0.001 (< 0.05, with a negative β value). This result indicates that the first, second, and third hypotheses are accepted, which means that the more taxpayers feel that tax incentives are beneficial, the greater their compliance with their tax responsibilities. Additionally, tax incentives significantly raise taxpayer compliance when they have a positive motivational posture and decrease it if they have a negative one. The implications of this study influence tax authorities to incentivize taxpayers to increase compliance. Knowledge of the taxpayer’s motivational postures will make it easier for tax authorities to manage taxpayer behavior to increase taxpayer compliance.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18807/PPM_2023_03_Ratnawati.pdfcomplianceincentivesmotivationtaxestaxpayers |
| spellingShingle | Vince Ratnawati Rusli Rusli Nita Wahyuni Determinants of tax compliance of micro, small, and medium enterprises (MSMEs) in Pekanbaru, Indonesia Problems and Perspectives in Management compliance incentives motivation taxes taxpayers |
| title | Determinants of tax compliance of micro, small, and medium enterprises (MSMEs) in Pekanbaru, Indonesia |
| title_full | Determinants of tax compliance of micro, small, and medium enterprises (MSMEs) in Pekanbaru, Indonesia |
| title_fullStr | Determinants of tax compliance of micro, small, and medium enterprises (MSMEs) in Pekanbaru, Indonesia |
| title_full_unstemmed | Determinants of tax compliance of micro, small, and medium enterprises (MSMEs) in Pekanbaru, Indonesia |
| title_short | Determinants of tax compliance of micro, small, and medium enterprises (MSMEs) in Pekanbaru, Indonesia |
| title_sort | determinants of tax compliance of micro small and medium enterprises msmes in pekanbaru indonesia |
| topic | compliance incentives motivation taxes taxpayers |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18807/PPM_2023_03_Ratnawati.pdf |
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